The 2019 Arrest of Uwe Lenhoff In January 2019, German citizen Uwe Lenhoff was taken into custody following an extensive investigation by authorities in Germany, Austria, and other EU member states. Prosecutors allege that Lenhoff operated a broad network of fraudulent binary options websites, defrauding tens of thousands of retail investors across Europe with estimated losses surpassing €100 million. Simultaneously, a European arrest warrant was issued for his associate, Gal Barak of Israel, signaling the coordinated efforts by law enforcement to dismantle the operation. The Lenhoff Network: A Closer Look Currently detained in Germany, Uwe Lenhoff, 55, awaits trial. Additional…
Author: Tom
The FinTech Sector’s Role in Supporting Fraud The importance of financial technology providers in enabling large-scale investment fraud has become increasingly evident. U.S. prosecutors have repeatedly emphasized that online scams often rely on cooperating FinTech firms to handle transactions. Without these intermediaries, it would be significantly more difficult — if not impossible — for scam operations to collect funds from retail victims. One of the most telling examples of this is the case of Payvision, a Dutch FinTech company and former ING subsidiary, which is reported to have processed around €130 million in payments for schemes tied to Uwe Lenhoff…
Payment Processors as Enablers of Online Fraud The rise of cybercrime — especially fraudulent online brokers — has often depended on the cooperation of unregulated payment processors. Over the last decade, the boom of financial technology coincided with the growth of widespread binary options fraud and broker scams. A number of payment service providers are believed to have knowingly handled transactions tied to fraudulent operations, profiting from funds that were illicitly obtained from unsuspecting investors. These processors are increasingly being recognized as critical accomplices in the broader ecosystem of financial scams, and calls for accountability have intensified. Among the companies…
Rudolf Booker, Cheng Liem Li, and Gijs op de Weegh Leave the Company A significant leadership change has taken place at Payvision. The company’s original founders — Rudolf Booker, Cheng Liem Li, and Gijs op de Weegh — have formally resigned from their positions. The announcement, made by Booker via LinkedIn, comes amid intensifying scrutiny over Payvision’s historic business ties to now-imprisoned cybercrime figures. Booker, who launched Payvision in 2002 and served as its CEO, had long-standing connections with controversial individuals such as Uwe Lenhoff and Gal Barak. Both Lenhoff and Barak are currently incarcerated and awaiting further charges in…
Dutch Journalists Uncover New Developments in the Payvision Story On May 1, 2020, the three original founders of Payvision — Rudolf Booker (45), Cheng Lim Li (42), and Gijs Op de Weegh (44) — stepped down from their executive roles, either voluntarily or under pressure. This development was brought to light in an investigative article published by Dutch outlet Follow the Money (FTM). Founded in 2002, Payvision had gained attention in the financial technology sector and was acquired by ING, a deal that proved lucrative for the founders. The valuation of the company, as highlighted in the FTM piece, was…
German Regulator Proposes Permanent Prohibition Amid Growing Fraud Concerns Investor complaints related to binary options fraud have surged across Germany in recent years. Unlicensed firms such as SafeMarkets and Option888 have reportedly defrauded German retail investors out of hundreds of millions of euros. While the European Securities and Markets Authority (ESMA) enacted a temporary restriction on binary options in 2017, the German Federal Financial Supervisory Authority (BaFin) is now taking steps toward making that ban permanent. A draft regulation to this effect has been published for consultation. Binary Options Classified as Hazardous Financial Instruments Regulatory bodies have long regarded binary…
Regulatory Crackdown: Binary Options Market Shut Down in the UK According to a report from the Financial Times, the UK Financial Conduct Authority (FCA) has officially imposed a permanent ban on the sale, marketing, and distribution of binary options within the UK. This decisive action is expected to protect consumers from fraud and could potentially prevent annual losses of up to £17 million. Beyond European Measures: FCA Bans Securitized Binary Options The FCA’s prohibition goes beyond the restrictions implemented by the European Securities and Markets Authority (ESMA). While ESMA’s measures did not include securitized binary options, the FCA has extended…
Focus on High-Risk Payment Processors B2G GmbH, a German-registered company, is reportedly under investigation by law enforcement authorities across multiple jurisdictions both within and outside the European Union. The company, which operated as a payment processor, has been linked to numerous controversial online investment platforms, including Option888 and Blue Trading. These platforms have been associated with deceptive practices that resulted in significant losses for consumers. Key Individuals Involved The company was managed by Rainer Treuer of Germany and his business associate, Oleg Shvartsman, a Russian national. Both individuals are currently subjects of ongoing inquiries due to their alleged roles in…
Persistent Attacks on Investigative Platforms For more than two weeks, the websites associated with ScamGrinder and similar investigative initiatives have faced sustained Distributed Denial of Service (DDoS) attacks. This isn’t a new challenge—it reflects a pattern of cyber retaliation that has emerged repeatedly since early 2018. These incidents are believed to stem from efforts to uncover cybercrime networks and fraudulent financial operations. Since its inception, this investigative effort has endured nearly a dozen major DDoS campaigns. Each wave has involved hundreds of millions of malicious requests, aimed at rendering websites and servers inaccessible. In response, the infrastructure supporting these platforms…
A Closer Look at Transparency Issues in Online Lotteries Traditional state-licensed lotteries in many countries operate under stringent regulations to ensure fairness and accountability. This includes verified draw mechanisms and secure payout systems. In contrast, the online lottery space often lacks this level of oversight. Many platforms engage in questionable practices—pressuring users, hiding behind opaque corporate structures, failing to honor winnings, or vanishing entirely before resurfacing under new identities. The Scam-Or Project has analyzed the operational and ownership structure behind LottoPalace (https://www.lottopalace.com/) and the companies supporting it. Boiler Room Operations and Aggressive Sales Tactics LottoPalace allows users to place bets…